Cannabis Penny Stocks: MPX Bioceutical is Acquired by iAnthus

Across the marijuana market as of late, cannabis penny stocks have been very volatile. Today, we have the majority paring some losses, but many still remain in the red.

However, in all the confusion of legalization week in Canada, two US cannabis companies made a historic announcement. One of these belongs to the penny stocks family; the other is from a higher market cap. But now the two will merge to become one as iAnthus acquires MPX Bioceuticals.

Let’s take a look.

Cannabis Penny Stocks: Merger Between MPX and iAnthus

Last week, MPX Bioceutical Corporation (CSE:MPX) and iAnthus Capital Holdings Inc. (CSE:IAN) announced that they would merge in an all-stock transaction. The deal is the first time in history that two US publicly traded cannabis companies will join forces to become one entity.

MPX Bioceutical is a multinational diversified cannabis penny stock company focused on the medical and adult-use cannabis markets.

The Agreement

Under the agreement, there will be an exchange ratio of 0.1673 common shares of iAnthus for each common penny stock of MPX held by MPX shareholders. As the bigger company, iAnthus will effectively acquire MPX, and so the transaction will mean $835 million CAD for MPX Bioceutical.

On the news, MPX stock shot up to $1.19 CAD, but it lost those gains over the weekend.

iAnthus also made gains on the news, its stock rising to $8.19 on the day but it also lost those gains over the weekend. Perhaps investors were too eager? At the time of writing, IAN stocks are selling for $6.60.

Cannabis Penny Stocks Moving Forward

Both companies have a similar vision for growth in the marijuana market.

Before this acquisition, MPX had plans in the works to build ten dispensaries and four production facilities in four states in the US. This was in addition to its current facilities in five states. MPX also has a production facility under construction in Canada and a pending license application to service Health Canada.

So we will say goodbye to this cannabis penny stock, as MPX is taken over by iAnthus.

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